Lufthansa signs MOU with VARO

Lufthansa Group has signed a Memorandum of Understanding (MoU) on the production and supply of Sustainable Aviation Fuel (SAF) with VARO.

VARO says that it could start supplying SAF to Munich Airport in 2026.

“We believe in SAF being a powerful tool to make aviation more climate friendly. We are engaged in the development of SAF markets and making SAF logistically available at airports,” said Katja Kleffmann, head of fuel management supply, Lufthansa Group. “We are looking forward to our continued cooperation with VARO, which supports our sustainability strategy.”

In July 2022 VARO said it would use cash from its conventional energy business (it calls this engine one) to invest in sustainable energies including SAF (it calls this engine two).

“Our ONE VARO Transformation strategy is centred on meeting the need of our customers to decarbonize as they progress in the Energy Transition while ensuring reliability of supply,” said Dev Sanyal, CEO of VARO Energy. “This MoU builds on our long-standing partnership with the Lufthansa Group, one of the world’s largest airline Groups, and I am excited to be working with them to accelerate the development and use of Sustainable Aviation Fuels – a key element of our Biofuels strategic growth pillar.” 

VARO aims to produce around 260,000 tons of SAF per year by 2026. It is looking at scaling the production of hydrogen from sewage sludge, which will then be used to make SAF.